Kotak Lifetime Income Plan

Kotak Lifetime Income Plan is an immediate annuity plan. By paying a one-time lump sum premium, the plan provides a regular stream of income throughout the lifetime of the annuitant. The quoted income is guaranteed for the entire life of the annuitant and does not change with variations in the market conditions. This ensures that the annuitant is financially independent long after he/ she has stopped working. The plan supplements one’s limited income on retirement so that one can lead a comfortable retired life without any worries. It also helps overcome a situation where one exhausts his/ her savings and those of the loved ones. This pension plan offers 4 income options which help address the retirement needs of all kinds.

Single Premium: The premium of this annuity plan has to be paid upfront in a single lump sum

Ensures Financial Independence: The plan provides regular payouts to meet the needs after retirement. It allows one to be financially independent and lead life on own terms.

4 Income Options:This annuity plan offers a wide range of income options to suit different retirement needs. One can choose from the following 4 annuity options:

Lifetime Income: This option is most appropriate for people who do not have any dependents. It pays a regular stream of income throughout the life of the annuitant which helps in meeting daily expenses. The payout stops on the death of the annuitant.

Lifetime Income with Cash-Back: This option is suitable for people with dependents. It pays a regular income during the lifetime of the annuitant and returns the single premium to the nominee on the death of the annuitant to take care of the family.

Lifetime Income with a Term Guarantee: This option is relevant for people with liabilities that will continue for a definite term. It pays a regular income for the guaranteed period (choice of 5, 10, 15 or 20 years). The income continues for life in case of survival after the guaranteed period.

Last Survivor Lifetime Income: This option is fitting for people who have to provide for their spouse. It pays a regular stream of income during the lifetime of the annuitant and further continues for the life of the spouse after the death of the annuitant.

Multiple Payout Frequencies: The plan offers a range of annuity payout options to suit the needs of different people. The income payment modes available are monthly, quarterly, half-yearly and yearly.

Lifetime Annuity: The plan provides a regular income to the annuitant as long as he/ she is alive

Payment Option Choice: The plan gives 2 options to access the annuity payout – income is either credited to the bank account or paid through cheque

Negates the Risk of Poor Investment Returns: The plan guarantees the quoted income during the lifetime of the annuitant. The regular income remains fixed and does not change with any fluctuations in the market conditions. This works out to be better than investing on own to save for life after retirement because such investments may yield poor returns and lead to a reduction in savings.

Relaxed Entry Age: The policy allows people between the ages of 45 and 99 years to opt for this annuity plan. So even if one has not saved for life after retirement in their early life, they can do so at a later stage and secure the time when regular income stops.

Kotak Lifetime Income Plan - Benefits

Death Benefit: There is no Death Benefit as such. Only in the case of Lifetime Income with Cash-Back option, the nominee receives the full single premium paid at policy inception on the death of the annuitant. Other income options do not have any Death Benefit.

Maturity Benefit: Since this is an annuity plan, there is no Maturity Benefit

Tax Benefits: Tax benefits can be availed on the premium paid under Section 80CCC of the Income Tax Act, 1961

Kotak Lifetime Income Plan - Product Specifications

Minimum

Maximum

Entry Age of the Life Assured(Last Birthday)

45 years

99 years

Spouse Entry Age (applicable to Option 4)

35 years

99 years

Policy Term (PT) in years

Till the annuitant is alive

Premium Paying Term (PPT) in years

Single Premium

Annuity Mode

Monthly

Yearly

Single Premium (Retirement Fund)

Rs. 50000

No limit

Details About Premium

Annuity Option

Frequency of Annuity Instalment

Guarantee Term (Years)

Single Premium Amount (Rs.)

Annuity Instalment (Rs.)

Lifetime income

Yearly

N/A

75000000

7215000

Lifetime income with Cash-back

Yearly

N/A

75000000

52950000

Lifetime income with Term Guarantee

Yearly

20

75000000

64500000

Last Survivor Lifetime Income

Yearly

N/A

75000000

60300000

Kotak Lifetime Income Plan - Policy Details

Free Look Provision: The insurance company provides a free look period of 15 days from the date of receipt of the policy to review its terms and conditions. The policyholder can return the policy if he/ she disagrees with any of the terms and conditions of the plan stating the reason(s) for objection(s). In such a situation, the insurance company refunds the insurance premium paid after deducting the proportionate risk premium for the period of cover and expenses incurred for medical examination and stamp duty.

Income Option: Any one of the 4 income options once selected cannot be changed later on

Surrender: Surrender facility is not available under this plan

Policy Loan: No loan is available under this plan

Assignment: The facility of assignment is not allowed under this plan

Payment of Income: Annuity income is paid after Kotak Mahindra Old Mutual Life Insurance Limited receives of a ‘Certificate of Existence’ signed and submitted by the policyholder every year as per the format and procedure laid down by it (the insurance company)

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